US dollar sees gains on anxious market
US dollar saw gains in early European trading. Traders were turned away from risky investments by a further slump in oil prices.
At 07:00 GMT, the US Dollar Index was at 100.263, gaining 0.2%. At the same time EUR/USD dropped 0.1%, ending up at 1.0815. USD/JPY remained mostly flat, standing at 107.22.
Oil futures fell again following the largest US oil ETF stating, that it plans to sell all of its front-month contracts to cut the costs of storage. The new prices slump negated the optimism, caused by the positive news concerning the spread of the coronavirus and the global lockdowns.
US crude futures lost 13% and ended up at US$11.07 per barrel. Brent benchmark contract dropped 3% and ended up at US$22.37.
British pound’s positions were undermined after the Prime Minister Boris Johnson warned the public, that the country still needs to be prepared for the second wave of the coronavirus. GBP/USD was trading at 1.2416, losing 0.1%.